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Do you pay state taxes if you have an early withdrawal from a retirement account

 
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HelenaC
New Member

Do you pay state taxes if you have an early withdrawal from a retirement account

It depends what state. 

  • Because payments received from your 401(k) account are considered income and taxed at the federal level, you must also pay state income taxes on the funds
  • The only exception occurs in states without an income tax. 
  • Your 401(k) plan may offer you the opportunity to have taxes automatically withheld from a withdrawal. If you are unsure if your account offers this option, contact the administrator.

Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming have sales taxes but don't impose state income taxes, or levies on Social Security and pension incomeState-by-State Guide to Taxes on Retirees - Kiplinger

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